Renowned trader cautions about Tethers imminent downfall preceding the US dollar

Accusations of corruption have been leveled against Tether (USDT), raising concerns that it could become the next FTX. Renowned markets expert Peter Brandt has shared his belief that the popular stablecoin may be headed for disaster. Brandt’s concerns align with those of non-profit organization Consumers’ Research, which has launched a campaign against Tether, accusing it of posing a threat to consumers. In a recent post, Brandt expressed agreement with these concerns, stating that he has been arguing for years that Tether is headed for disaster. He also believes that the United States dollar (USD) will eventually meet its demise, but after Tether experiences a similar fate.

Consumers’ Research has claimed responsibility for a digital billboard in New York City’s Times Square with the tagline “Tether to corruption.” The organization accuses Tether of having affiliations with FTX before its crash. Consumers’ Research CEO Wild Hild cited reports in a press release, highlighting Tether’s suspicious business practices, refusal to perform an audit, and alleged use by terrorists and traffickers. The organization fears that Tether could become the next FTX and warns consumers to be cautious of stablecoins that do not provide proper certification of their held assets.

In its post cited by Brandt, Consumers’ Research argues that while the future may include stablecoins, it should not include Tether. The organization claims that Tether has misled the market about its U.S. backing, received a high-risk rating from S&P, and refused to undergo an independent financial audit.

Despite these allegations and the campaign by Consumers’ Research, Tether remains pegged to the U.S. fiat currency. However, history has shown that stablecoins tend to depeg when their parent companies face controversies. This occurred with the LUNA/UST algorithmic stablecoin, causing a sustained bearish season in the cryptocurrency market, as well as with Circle’s USD Coin (USDC) due to its exposure to the failing Silicon Valley Bank (SVB).

Please note that the content of this article should not be considered investment advice. Investing is speculative and carries risks.

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